Capricor Therapeutics Inc. (NASDAQ:CAPR) has experienced a significant surge in stock value, skyrocketing 263% to $23.09. This surge follows the successful results of a late-stage study on their cell therapy for cardiomyopathy associated with Duchenne muscular dystrophy.
Late-Stage Breakthrough Drives Stock Performance
The company’s treatment, Deramiocel, had previously been denied approval by the Food and Drug Administration (FDA) earlier this year, resulting in a 33% drop in stock value on that day. Following the positive study results, Capricor plans to resubmit the treatment for FDA approval.
Current Stock Trading Levels
As of now, CAPR stock is trading at its highest level since 2017, reaching a peak of $40.37 earlier in the day. This turnaround marks a stop in a downward trend that began after a December 3 high of $20.04. In 2023, Capricor’s stock has increased by 87.6%.
Market Activity and Short Interest
The recent breakout has been fueled by a short squeeze, with short interest increasing by 15.6% over the last two reporting periods. Currently, there are 14.15 million shares sold short, representing 37.2% of the stock’s total float.
- Average trading volume indicates that it would take nearly ten full trading days for short sellers to cover their positions.
- The options market reflects strong interest, with a 10-day put/call ratio of 3.99, just 3 percentage points from an annual high.
- Schaeffer’s put/call open interest ratio (SOIR) stands at 2.35, ranking in the 98th percentile of annual readings.
Options Market Activity
Today, approximately 24,000 options contracts have changed hands, which is eight times the average intraday volume. The December 6 put option is currently the most popular, with notable sell-to-open activity being observed.
Capricor Therapeutics’ significant stock surge underscores the impact of clinical trial results on biotech stocks and highlights the ongoing volatility and investor interest in the biotech sector.
